$DOGS to launch on OKX August 20th, is the tap-to-earn narrative still alive? (2024)

The Tap-to-Earn crypto narrative has swept through the country like an epidemic.

Only a few were lucky (or unlucky, depending on your perspective) to have been “immune” to the Tap frenzy.

People tapped their phones in the most unexpected places, with pictures circulating online of a churchgoer tapping their phone during a worship service.

After the first project, NOTCOIN, performed well in this niche, several others emerged, with the latest being $DOGS. $NOT currently trades at $0.01083 per $NOT. $DOGS will launch on OKX on August 20th.

The question is, with a new Tap-to-Earn project launching almost every two market days, is the narrative becoming oversaturated? Is the Tap-to-Earn narrative still alive?

The TON Ecosystem

The TON ecosystem is a decentralized cryptocurrency system created by the chat platform Telegram. Initially, Telegram was just a messaging app similar to WhatsApp. Over the years, Telegram has evolved, and its latest innovation is incorporating cryptocurrency into the application.

In other words, Telegram is no longer just a messaging app. It now functions as a cryptocurrency wallet, a decentralized app (DApp) browser, and can be used to deploy smart contracts.

TON is the native token of the Telegram ecosystem and is used for gas fees and the deployment of smart contracts. Gas fees are essentially levies for performing a contract on the blockchain.

What Exactly is Tap-to-Earn?

Many Nigerians were puzzled when people earned from NOTCOIN. What exactly is Tap-to-Earn?

As mentioned earlier, the Telegram app has become more than just a messaging tool; it now supports the deployment of smart contracts and Web3 DApps.

This means that apps can be developed and run on Telegram. Tap-to-Earn refers to Telegram apps where users perform tasks such as tapping, referring others, and completing quests to earn points. These points are eventually converted into real money that may be credited to users’ wallets. But the real question is: why are users being paid for essentially doing nothing?

The Tap-to-Earn Business Model

According to Vladimir Toporkov, Edelcoin CMO, one factor that contributed to NOTCOIN’s success was the initial hype. The game attracted 4.1 million users in just one week of launching on Telegram.

In comparison, Facebook reached 1 million users after an entire year. In less than a month, NOTCOIN had 4 million daily active users (DAU) and 20 million total players almost double the active users of the popular game Axie Infinity at its peak in 2021. These numbers reflect a substantial customer base.

The business model behind the Tap-to-Earn narrative focuses heavily on active users. Revenue is generated from advertisem*nts, appreciation of native tokens, and venture capital funding. This revenue stream will continue only if users remain engaged, which is why there are always incentives for active users—to keep them coming back.

Just as stock prices rise, the team behind a project benefits financially when their native token appreciates. Active NOTCOIN users were rewarded with NOT points that were eventually converted into $NOT tokens, which users then exchanged for real money.

The Tap-to-Earn model is essentially incentivized gaming: keep users active and reward them for doing so. But what happens when active users decline? What happens when the narrative becomes oversaturated?

The Future of the Tap-to-Earn Narrative

Projects like Bitcoin, Raypower FM, Amazon, and Microsoft enjoyed what experts call a “first-mover advantage.” In other words, being the first in a particular niche or narrative provides a significant edge.

Since Bitcoin, no other digital currency has matched the hype, despite boasting better technology and security. NOTCOIN benefits from this first-mover advantage in the Tap-to-Earn narrative.

However, subsequent players may struggle to reach the same heights as competition increases and users become more selective.

New Tap-to-Earn projects like Hamster Kombat, Blum, PocketFi, Catizen, Pixel Verse, and Aqua Protocol illustrate the rapid proliferation of the narrative. Given how easy it is to launch and market these projects, it’s difficult to imagine all of them succeeding.

Moreover, many of these projects lack unique value. For example, while Pioneer NOTCOIN offers Tap gaming, its interface is unremarkable.

Blum aims to integrate several blockchains into one, but modular chains like Celestia and traditional decentralized exchanges (DEXs) already address this issue. The more you examine, the less sustainable the narrative seems.

$DOGS Withdrawal in Progress

• Users can now request withdrawals of $DOGS from the DOGS app on Telegram. Although the status still shows as pending, further updates from the team will clarify when these points will hit users’ wallets.
• Recall that $DOGS was allocated based on the age of users’ Telegram accounts, with older accounts receiving higher point allocations. Users who referred others also earned points.
• On the microblogging platform X, excitement is running high as users anticipate the launch price of the $DOG token.
• Optimists are already planning what to buy when the tokens launch at a “good” price. In closing, may the dogs be with them. Woof!